Question

Country A has an absolute command economy. Country B has a mixed economy and a population that favors market trade. Both want to increase trade to generate more wealth. Which action would Country B most likely take that Country A would not?
a)Impose stricter divisions of labor
b)Increase production quotas
c)Loosen certain trade regulation
d)Permit limited private ventures

Answer 1

Command economy is a system, where the centralized government determines economic components, such as what to produce, how much to produce and under what price to produce. It is an example of communist economies. Free market does not have an importance in this type of economy. Since central government is a sole competitor in command economy, there would be no place for limited private ventures.